Since March, the price of BNB, previously also known as Binance Coin, has barely fallen below $500, despite the broader crypto market downturn. Following heavy losses from major cryptocurrencies, BNB has shown some impressive resistance to the price drop, supported by strong demand.
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Despite this strength, the latest BNB price forecast by CoinCodex still estimates the coin could rise by 25% and reach $650 by October 10, 2024. Meanwhile, investor sentiment is bearish, and the Fear & Greed Index also stands at 33, reflecting that uncertainty in the market.
This mixed outlook brings up questions about BNB’s near-term trajectory. While there might be a possibility of growth in the long run, short-term conservatism is required, more so from the recent coin volatility and broader market dynamics.
BNB’s Sideways Movement And Strong Demand
Since March, BNB has moved within a sideways pattern that posts heavy ups and downs. However, after every fall, BNB has strongly rebounded above $500, meaning that there is strong demand for the coin. For instance, on September 6, it fell as low as $470 but later rebounded to trade at $520 at press time.
This is also in line with the rising expectations of an altseason, as a decline in Bitcoin dominance tends to boost altcoins like BNB. Investors seem confident that BNB might continue profiting from this trend in a way that it always has historically when stronger demand for alternative cryptocurrencies was triggered.
On-Chain Data: Activity And Network Demand
Recent on-chain data from Dune Analytics points to both some promising and concerning trends in BNB. The number of active addresses on the Binance Smart Chain increased by 6% week-over-week, indicating that more people are interested in getting on the network.
This increase in active addresses did not, however, reflect a similar uptick in transaction volumes, which declined 1.1% over the week, hinting that increased participation has not yet translated into strong network activity.
The decline in network fees also reflects reduced activity, which may have an effect on the path that the BNB price may take. To be sure, high network usage has always seen relatively high demand for the BNB historically, and its prolonged depressed activity can cap the upside potential of…
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